Name: Three Tax Hurdles Stifling U.S. Crypto Innovation
Uploaded: 2026-01-31T16:00:37+00:00
Duration: 685 s

Speakers

Colin McLaren — Head of Government Relations, Solana Policy Institute

Summary

Colin McLaren of the Solana Policy Institute discusses the push for U.S. crypto tax legislation with Renato Mariotti and Rebecca Rettig. The conversation focuses on wash-sale parity for crypto commodities, de minimis relief for small on-chain and stablecoin transactions, and capital-asset treatment for staking rewards. McLaren argues tax legislation can advance even if market structure stalls and sees bipartisan appetite for clearer rules that could reduce friction for U.S. crypto innovation.

Colin McLaren outlines House Ways and Means crypto tax priorities.
Wash-sale rules should not treat crypto commodities differently from other commodities.
De minimis relief is sought for stablecoin fluctuations and small gas-fee transactions.
Staking rewards should be taxed at sale as capital assets, not at receipt as income.
McLaren says tax legislation can pass without market structure, though market structure would improve the bill.
He cites bipartisan interest and possible regulatory alternatives such as rescinding the IRS staking revenue ruling.
The discussion also notes 401(k) crypto access and DeFi broker-rule relief as regulatory tailwinds.

Ideas

Colin McLaren Head of Government Relations, Solana Policy Institute 1:02

Broker-rule repeal supports DeFi buildout.

The bipartisan CRA that overturned IRS guidance treating DeFi frontends and other DeFi actors as brokers ensures DeFi can be built in America without unnecessary and burdensome regulation. The speaker views this as a positive structural development for DeFi and a continuation of reducing frictions for US crypto innovation.

Colin McLaren Head of Government Relations, Solana Policy Institute 2:40

Fair wash-sale rule for crypto commodities.

Congress should write a wash sale rule that treats crypto commodities fairly rather than applying securities-style wash-sale rules to them. Tokens like Bitcoin, Ethereum, Solana, and XRP have commodity status under current law, so applying the wash sale rule to them would lack parity with other commodities and create unnecessary tax friction. The speaker favors a carefully crafted rule that taxes on-chain securities like off-chain securities but does not treat commodities differently.

Colin McLaren Head of Government Relations, Solana Policy Institute 3:40

De minimis tax fix aids on-chain economy.

A de minimis provision should eliminate tax recognition and reporting for economically insignificant on-chain transactions. This includes stablecoin secondary-market fluctuations around par, which otherwise create gains/losses and 1099-DA burdens, and small gas-fee disposals of Ethereum or Solana that would otherwise trigger tracking obligations. Reducing these frictions would support stablecoin usage and the broader on-chain economy.

Colin McLaren Head of Government Relations, Solana Policy Institute 5:22

401(k) crypto access expands retirement demand.

The Department of Labor rescinded guidance that had blocked 401(k) plans from holding crypto, unlocking retirees and pensioners to a new range of assets. The speaker presents this as an additional regulatory tailwind that can broaden crypto ownership through retirement accounts.

Three Tax Hurdles Stifling U.S. Crypto Innovation

Summary

Ideas

Up Next